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Electoral violence and supply chain disruptions in Kenya's floriculture industry

Ksoll, Christopher, Macchiavello, Rocco and Morjaria, Ameet (2021) Electoral violence and supply chain disruptions in Kenya's floriculture industry. Review of Economics and Statistics. ISSN 0034-6535 (In Press)

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Abstract

Violent conflicts, particularly at election times in Africa, are a common cause of instability and economic disruption. This paper studies how firms react to electoral violence using the case of Kenyan flower exporters during the 2008 post-election violence as an example. The violence induced a large negative supply shock that reduced exports primarily through workers’ absence and had heterogeneous effects: larger firms and those with direct contractual relationships in export markets suffered smaller production and losses of workers. On the demand side, global buyers were not able to shift sourcing to Kenyan exporters located in areas not directly affected by the violence nor to neighboring Ethiopian suppliers. Consistent with difficulties in insuring against supply-chain risk disruptions caused by electoral violence, firms in direct contractual relationships ramp up shipments just before the subsequent 2013 presidential election to mitigate risk.

Item Type: Article
Official URL: https://direct.mit.edu/rest
Additional Information: © 2021 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology
Divisions: Management
Subjects: H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HV Social pathology. Social and public welfare. Criminology
Date Deposited: 24 Sep 2021 09:42
Last Modified: 17 Nov 2021 01:04
URI: http://eprints.lse.ac.uk/id/eprint/112128

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